Overview of electricity production and use in Europe

Electricity generation

Between 1990 and 2014, gross electricity generation[1] in the EU-28 increased by 23 % at an average rate of 0.9 % per year. After2005, a small decrease of 0.5% per year has been observed.

Contribution of fuels to 2014 electricity generation 

In 2014, electricity generation by fuel in the EU-28 was as follows (Figure 2):

• 29 % from renewables (compared with 13 % in 1990);
• 28 % from nuclear energy (compared with 31 % in 1990);
• 25 % from coal and lignite (compared with 39 % in 1990);
• 15 % from natural and derived gas (compared with 9 % in 1990);
• 2 % from oil (compared to 9 % with 1990); and
• 1 % from other fuels (unchanged from 1990).

Fossil fuel electricity generation

Taken together, fossil fuels continue to dominate the EU-28 electricity mix, although their share of gross electricity generation fell by 25 %, from 56 % in 1990 to 42 % in 2014.

• Electricity generated from coal and lignite decreased by 21 % over the same period, at an average rate of 1 % per year. The reduction in the share of solid fuels was driven by changes in the prices of solid fuels compared with natural gas, as well as by support policies for renewables and more stringent environmental regulations.
• The electricity produced from natural and derived gas increased by 119 % between 1990 and 2014, at an average rate of 3 % per year. The use of these fuels increased rapidly between 1990 and 2005 (8 % per year) but, on average, it decreased from then on by 4 % per year. The observed coal-to-gas switch during the nineties was driven by several factors, including greater health and environmental concerns, consistently falling gas prices in the late 1980s and 1990s, and the attractiveness of combined-cycle gas plants[2]. Since 2008, the share of natural gas in electricity generation has declined by 9 percentage points against the backdrop of increasing gas prices driven by the gas-to-oil price indexation, lower economic activity and low CO₂ prices under the EU-ETS.

[2] Combined-cycle gas turbines (CCGT) became more attractive due to a combination of factors, especially their relatively low capital expenditure (CAPEX), higher efficiency rate, the possibility to run the plants in a more flexible mode (i.e. start-up and shut-down operations) and favourable coal-gas price differentials since the late 1980s and early 1990s.

Nuclear electricity generation

Nuclear electricity increased by 10 % between 1990 and 2014, at an average annual rate of 0.4 %. A closer look at the trend reveals an increase between 1990 and 2005 of 1.5 % per year and, after 2005, an average decrease of 1.4 % per year. Nuclear electricity totally disappeared in Lithuania as a result of decommissioning the last nuclear reactor in 2009, but there are plans for a new nuclear power plant. Furthermore, nuclear electricity decreased between 2005 and 2014 in Germany (-5.6 % per year), Belgium (-3.8 %) and the United Kingdom (-2.7 %), while it increased in countries such as Romania (8.6 % per year), the Czech Republic (2.3 % per year) and Hungary (1.4 % per year).

In the wake of the Fukushima accident of 2011, several countries plan to step up the decommissioning of nuclear power plants (e.g. Belgium, Germany, Spain and Switzerland, with Germany planning to decommission all of its nuclear plants by 2022 and Spain banning the construction of new reactors). Other countries, however, are still considering to increase their nuclear capacity (Romania, United Kingdom), have new nuclear power plants under construction (e.g. Bulgaria, Finland, France and Slovakia) or have paved the way to extend the lifetime of existing nuclear reactors (Sweden). However, the costs of nuclear electricity generation have increased since the Fukushima nuclear accident in 2011 (e.g. by about 20 % in France between 2010 and 2013, because of investments in maintenance and safety measures).

Renewable electricity generation

The electricity produced from renewable sources increased by 184 % between 1990 and 2014 at an average annual rate of 4.5 %. After 2005, the rate increased to 7.3 % per year. The acceleration observed since 2005 occurred in the context of national and EU renewable energy support policies and significant cost reductions achieved by certain renewable energy technologies, such as solar photovoltaics in recent years. In 2014, 44 % of renewable electricity was generated from hydro (94 % in 1990), 27 % from wind (0 % in 1990), 18 % from biomass (4 % in 1990), 11 % from solar (0 % in 1990) and 1 % from geothermal (1 % in 1990).

Carbon intensity of EU-28 electricity production

In the light of the increased role of renewable electricity and the fuel shifts observed between 1990 and 2014, the carbon intensity of the total electricity generation in the EU-28 is over one third (36 %) lower today than in 1990 (decreasing from 431 gCO₂/kWh in 1990 to 276 gCO₂/kWh in 2014) (Figure 1b). Between 2007 and 2014, the CO₂ emissions per kWh generated decreased by 22 % on average (3.5 % per year). This was because of increased production efficiency and the transition from fossil fuels to renewables for the generation of electricity. The share of fossil fuels in gross electricity production decreased by 10 percentage points over this period.

Member countries differ significantly with regard to the CO₂ intensity of their electricity production. Greece (830 g CO₂/kWh in 2014), Estonia (762 g CO₂/kWh) and Malta (715 g CO₂/kWh) had the highest intensities, as a result of the low amount of renewables and nuclear sources in their national electricity mixes. On the other hand, Sweden (10 g CO₂/kWh in 2014), France (35 g CO₂/kWh) and Austria (60 g CO₂/kWh) had the lowest CO₂ intensities for their electricity production. France (-80 %) and Austria (-69 %), together with Slovakia (-77 %) and Luxembourg (-69 %) had the highest decarbonisation rate in electricity production over the 1990-2014 period. Iceland, whose electricity production is entirely based on renewable energy sources (hydro power and geothermal energy), has zero CO₂ emissions for its electricity production.

The CO2 emission intensity from conventional thermal power stations and district heating decreased by one quarter in the EU-28 between 1990 (745 g CO₂/kWh) and 2014 (558 g CO₂/kWh) (Figure 1a) [HCW2]. This indicator only considers main activity power stations and heating plants and does not take into account electricity production from nuclear and renewable sources. On the contrary, it includes emissions for heating purposes. Between 1990 and 2010, the CO₂ emissions per kWh generated decreased by 28 % on average (1.6 % per year). This was due to increased production efficiency and the transition from coal to gas for the generation of public electricity and heat. Since 2010, however, CO₂ emission intensity has increased by 0.9 % per year, mainly due to an increase in the share of electricity and heat generated from coal and lignite at the expense of gas.

An assessment of electricity generation for non-EU EEA countries could be performed for Iceland, Norway and Turkey for which energy data were available. In Turkey, electricity generation increased by 338 % between 1990 and 2014, at an average rate of 6.3 % per year. Between 2005 and 2014, electricity production increased by 5.0 % per year. Natural gas contributes almost half of the electricity production (49 %) in Turkey, followed by coal (29 %) and renewables (21 %). In Iceland, electricity generation increased by 302 % between 1990 and 2014, at an average rate of 6.0 % year. Between 2005 and 2014, electricity production increased by 8.5 % per year. All electricity produced in Iceland (100 %) comes from renewables (hydro and geothermal). In Norway, electricity generation increased by 17 % between 1990 and 2014, at an average rate of 0.6 % year. Between 2005 and 2014, electricity production decreased by 1.8 % per year. Renewables (mainly hydro) contribute to almost all electricity production in Norway (98 %).

Electricity consumption

Between 1990 and 2014, final electricity consumption (i.e. the total consumption by all end-use sectors plus electricity imports and minus exports) increased in the EU-28 by 25.1 %, at an average annual growth rate of 0.9 % per year (see Figure 3). Power stations' own electricity consumption (for instance in transformers, per unit of electricity produced) and the associated transmission and distribution network losses led to a slightly lower growth rate for electricity consumption than for electricity generation.  

• Most countries in the EU-28 experienced an overall increase in electricity consumption over this period, except for Lithuania, Romania, Bulgaria and Latvia. 
• However, the average annual growth rate of electricity consumption varied greatly by country, ranging from -1.1 % per year in Lithuania and Romania to about 3.4 % per year in Cyprus and Malta.
• The decrease or low growth in electricity consumption in the new Member States was a combined result of economic restructuring in the 1990s, price adjustments and the decrease or low growth of the population in those countries.
• Within the EU-28, electricity consumption peaked in 2008, after which it began to decrease slowly, driven by a more pronounced decrease in the industry sector (see Fig.3). By 2014, the final energy consumption of electricity was 5.5 % below the 2008 level (before the recession) but still above the 1990 level.

In the non-EU EEA countries, Iceland, Norway and Turkey, electricity consumption increased between 1990 and 2014 by 0.5 % per year (Norway), 6.3 % per year (Iceland) and 6.5 % per year (Turkey). The growth of electricity consumption in non-EU EEA countries was dominated by the increased electricity consumption in Turkey. Here, the high consumption rate is due to Turkey's rapid transition to a modernised economy, with the associated increase in electricity generation and use. Between 2005 and 2014, there was a continued increase of 8.9 % per year for Iceland and 5.3 % per year for Turkey, while in Norway electricity consumption decreased by 0.2 % per year.

Electricity consumption by sector

The increase in electricity consumption since 1990 can be traced back to an increase in consumption in the services (83 %) and households (29 %) sectors (see Figure 3). Since 2005, electricity consumption in the services sector continued to increase (by 10 %), while electricity consumption in the household sector decreased by 2 %. Electricity consumption in industry also decreased (by 12 %) over the same period due to improvements in industrial processes and a slightly decrease in activity.

In 2014:

• Industry remained the largest electricity-consuming sector in the EU-28, accounting for 37 % of all electricity consumption (compared with 46 % in 1990). Between 1990 and 2005, electricity consumption in the industry sector increased by 0.9 % per year, while it decreased by an average of 1.4 % per year from 2005 to 2014.
• The services sector and the households sector come second, with each responsible for almost one third of all electricity consumption in the EU-28:
• The consumption of electricity in the services sector was 30 % in 2014, compared with 20 % in 1990. It is the sector with the fastest growing consumption. Since 1990, electricity consumption in the service sector has increased by 82.8 %, at an average annual rate of 2.5 %. The main reasons for increased electricity consumption in the services sector were the sustained growth of this sector throughout the EU and the increased use of air conditioning and IT equipment (see ENER 037).
• Electricity consumption in the households sector accounted for 29 % of all electricity consumption in the EU-28, compared with 28 % in 1990. Between 1990 and 2014, electricity consumption in the household sector grew by 29 %, at an average annual rate of 1.1 %. Between 2005 and 2014, electricity consumption in the household sector actually decreased by 0.2 %. Improvements in the energy efficiency of large electrical appliances such as refrigerators, freezers, washing machines, dishwashers, TVs and dryers were offset by the use, number and size of large appliances as well as by a growing number of smaller appliances, including new IT appliances (explanatory factors for the energy consumption of households are shown in ENER 037).
• The transport sector was responsible for only 2.3 % of all electricity consumption in the EU-28 in 2014 (2.9 % in 1990). Between 1990 and 2014, electricity consumption in the EU-28 transport sector increased from 5.5 Mtoe in 1990 to almost 6.3 Mtoe in 2002. After 2002, it decreased to slightly below the 1990 level (5.3 Mtoe in 2014). The increased consumption of electricity for transport purposes (railways) in some countries, such as France and Italy, counterbalanced a decrease in electricity consumed for railways in some new Member States, such as Poland and the Czech Republic.
• Agriculture, forestry and fishing were responsible for a mere 2 % of all electricity consumption in the EU-28 (2.6 % in 1990). Electricity consumption in these sectors decreased by 1 % per year between 1990 and 2005, and has been growing since 2005 at an average annual rate of 1.5 % (-0.1 % per year over the whole 1990-2014 period).

With regard to non-EU EEA countries, between 1990 and 2014, overall electricity consumption in all sectors increased by 357 % in Turkey, 331 % in Iceland and 12 % in Norway. The average rate of increase was 6.5 % per year, 6.3 % per year and 0.5 % per year, respectively. In the main sectors, the average growth rates recorded between 1990 and 2014 were:

• Industry: 5.4 % per year (Turkey), 7.6 % per year (Iceland) and 0.04 % per year (Norway)
• Services: 8.9 % per year (Turkey), 3.2 % per year (Iceland) and 0.8 % per year (Norway)
• Households: 7.0 % per year (Turkey), 1.6 % per year (Iceland) and 0.9 % per year (Norway).

In 2014, the share of electricity consumption in the agricultural, fishing and forestry sectors of Turkey, Iceland and Norway were 2.5 %, 1.6 % and 1.8 %, respectively. This constituted an average annual change of +8.1 % in Turkey, -0.2 % in Iceland and +4.6 % in Norway since 1990, and an annual rate of 2.6 % in Turkey, -1.0 % in Iceland and -0.7 % in Norway since 2005. For all three countries, electricity consumption in the transport sector had a share of less than 1 % in 2014.

Electricity consumption per capita

Electricity consumption per capita increased by 17 % in the EU-28 between 1990 (4 553 kWh/capita) and 2014 (5 338 kWh/capita). The EU-wide consumption average varies greatly between countries, with a low per-capita consumption observed in some new Member States in 2014, including Romania (2 101 kWh/capita), Lithuania (3 138 kWh/capita), Latvia (3 289 kWh/capita), Poland (3 311 kWh/capita), Croatia (3 493 kWh/capita) and Hungary (3 513 kWh/capita), and a high per-capita consumption observed in other Member States, including Finland (14 517 kWh/capita) and Sweden (12 669 kWh/capita). In Sweden, this is due to the high market penetration of electrical heating linked to the low-cost of hydropower produced electricity (see Figure 5 and ENER 037). The increasing use of air conditioning in southern European countries also contributes to a large increase in electricity consumption during the summer months.

Between 1990 and 2014, electricity consumption per capita in non-EU EEA countries decreased at an average annual rate of 0.3 % in Norway, while it grew rapidly in Iceland and Turkey at an average annual rate of 5.2 % and 5.1 %, respectively. In 2014, per capita electricity consumption reached 21 224 kWh for Norway and 51 724 kWh for Iceland, whereas for Turkey it was one order of magnitude smaller (2 680 kWh).

Power generation is becoming more efficient in the EU-28, with the average efficiency having increased from 36 % in 1990 to 44 % in 2014. Efficiency depends mainly on the mix of fuels (fossil, nuclear or renewables) and the mix of power and heat generation:

• high efficiencies are related to hydro and wind (100 % efficiency, given that electricity is the first measurable primary equivalent energy for these renewable energy technologies);
• low efficiencies are associated with old fossil fuel fired power and/or heat plants (<30 %), nuclear power plants (typically 33 %, with heat being the first measurable primary equivalent energy), direct biomass burning (20-25 %) or geothermal power and/or heat generation (around 10 % or less, with heat being the first measurable primary equivalent energy). The co-firing of fossil fuel plants with biomass does not decrease the efficiency of these plants significantly.
• between 1990 and 2014, the share of electricity in the output of conventional thermal plants and district heating (electricity and heat) increased slightly in combination with increasing efficiencies (see ENER 019).

The EEA member countries with an average power generation efficiency of 50 % or more in 2014 were: Norway (99 %), Austria (75 %), Luxembourg (74 %), Croatia (65 %), Portugal (58 %), Ireland (55 %) and Spain (51 %).

The largest increases occurred in Romania and Croatia due to the decommissioning of inefficient fossil fuel-fired power plants and the increased share of hydro and/or wind: Romania increased from 23 % in 1990 to 46 % in 2014, while Croatia increased from 46 % to 65 % in the same period.